Western Company is preparing a cash budget for June. The company has $10,100 cash at the beginning of June and anticipates $31,900 in cash receipts and $38,300 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:
a. Repay $6,300.b. Borrow $6,300.c. Repay $3,700.d. Borrow $6,400.e. Borrow $10,000.

Borrow $6,300.

Explanation:

The company has $10,100 cash at the beginning of June

and anticipates $31,900 in cash receipts

and $38,300 in cash disbursements during June.

This gives a positive balance of (10,100 + 31,900 - 38,300) $3,700 and

To maintain the $10,000 required balance, during June the company must:Borrow $6,300.

b. Borrow $6,300

Explanation:

To calculate the required balance to maintain $10,000 required balance, we will first calculate the current balance in the account.

The company has $10,100 at the beginning of June + anticipates $31,900 in cash receipts - $38,300 in cash disbursements during June.

$10,100 + $31,900 - $38,300 = $3,700 is the amount in the account.

Now we will calculate the amount required for the company to maintain a balance of $10,000.

$10,000 - $3,700 = $6,300

Western Company needs to borrow $6,300 in order to maintain the $10,000 required balance.

where is the graph?

fractionally backed paper money

fiat money

paper money

metallic money